Predictions by the analysts, reported last week in the Toronto Globe and Mail, suggest that Microsoft will pay $375 per unit to its manufacturing partners, with the final retail price of the console pegged at $299.

That’s in line with comments from Microsoft boss J Allard, who told the media at E3 that the Xbox 360 would launch “in the neighbourhood” of the $300 price point at which the original Xbox launched in late 2001 in North America.